Escrow & Title
In South Carolina, an escrow account held by a broker must:
AEarn interest credited to the broker
BBe maintained at the South Carolina State Treasury
CBe a federally insured trust or escrow account✓ Correct
DBe jointly titled in the broker's and client's names
Explanation
South Carolina law requires broker escrow accounts to be maintained at federally insured financial institutions. The broker may not commingle client funds with personal or operating funds.
People Also Study
Related South Carolina Questions
- Which fiduciary duty requires an agent to act in the client's best financial interest in South Carolina?Agency
- An agent in South Carolina who deposits earnest money into their personal account instead of an escrow account violates which fiduciary duty?Agency
- In South Carolina, a real estate agent who has a personal financial interest in a property they are selling for a client must:Agency
- In South Carolina, 'impound accounts' (also called escrow accounts) held by lenders are used to:Finance
- In South Carolina, a licensee's failure to account for client funds properly may result in:South Carolina License Law
- In South Carolina, what is the purpose of an 'escrow account' held by a mortgage lender?Finance
- A South Carolina broker holds $125,000 in client trust funds. The broker's own funds in the account total $500 (allowed minimum for bank charges). What is the maximum allowed balance in personal funds?Real Estate Math
- Which duty requires a South Carolina agent to use their professional skills to benefit the client?Agency
Key Terms to Know
Escrow
A neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Promissory NoteA written promise to repay a loan under specified terms — the borrower's personal financial obligation in a real estate transaction.
Study This Topic
Practice More South Carolina Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Carolina Quiz →